NEWTON, Mass., Nov. 9, 2011 /PRNewswire/ -- Ambient Corporation (NASDAQ: AMBT), a leading provider of smart grid communications platforms and applications, announced today its financial results for the third quarter ended September 30, 2011.
Financial highlights for the third quarter of 2011 included:
- Total revenue of approximately $17.0 million, representing a 241% increase from approximately $5.0 million for the corresponding period in 2010
- Net income of approximately $2.5 million, or $0.14 per share on a fully diluted basis
- Cash generated from operating activities increased to approximately $8.9 million for the nine months ended September 30, 2011
"Today, Ambient has over 68,000 communications nodes deployed and managed by the AmbientNMS® network management system, communicating with over half a million endpoints which include both electric and gas meters. Feedback regarding the performance of the Ambient SmartGrid platform continues to be very favorable," stated John J. Joyce, President & CEO of Ambient Corporation. "Our consistent performance to date affirms our confidence in achieving the revenue growth targets previously provided for 2011 and with a backlog of approximately $51 million as of September 30, 2011, we continue to have significant revenue visibility well into 2012."
Summary Financial Performance
Total revenue for the three months ended September 30, 2011 was approximately $17.0 million, representing a 241% increase from approximately $5.0 million for the corresponding period in 2010. Revenues grew year-over-year as a result of the substantial increase in sales volume.
Gross profit for the September 2011 quarter amounted to $7.5 million compared to approximately $2.0 million for the corresponding period in 2010. Gross margin for the September 2011 quarter improved to approximately 44% compared to approximately 40% for the corresponding period in 2010. Gross margin improvements are due primarily to higher sales volumes, offset somewhat by increased overhead costs associated with the additions to staff necessary to accommodate Ambient's growth.
Net income for the three months ended September 30, 2011 was approximately $2.5 million, or $0.14 per share on a fully diluted basis. This compares to a net loss of approximately $313,000, or $0.02 per share, for the corresponding period in 2010. The third quarter of 2011 represents the fourth consecutive quarter of profitability for Ambient.
Cash provided by operating activities for the nine months ended September 30, 2011 was approximately $8.9 million, compared to net cash used in operations of approximately $2.7 million for the corresponding period in 2010.
A more detailed description of our business, results of operations and financial statements are contained in the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2011.
About Ambient Corporation
Ambient designs, develops and sells the Ambient Smart Grid® communications platform. The Ambient Smart Grid products and services include communications nodes; a network management system, AmbientNMS®; integrated applications; and maintenance and consulting services. Using open standards-based technologies along with in-depth industry experience, Ambient provides utilities with solutions for their smart grid initiatives. Headquartered in Newton, MA, Ambient is a publicly traded company (NASDAQ: AMBT). More information on Ambient is available at www.ambientcorp.com.
This press release contains statements that may be deemed to be "forward-looking statements" under federal securities laws. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, the potential failure to forecast revenues and/or to make adjustments to our operating plans necessary as a result of any failure to forecast accurately, our ability to retain and attract additional customers, particularly in light of our dependence on a single customer for substantially all of our revenue, our expectations regarding our expenses and revenue, anticipated trends and challenges in our business and the markets in which we operate, including the market for smart grid technologies, our expectations regarding competition as more and larger companies enter our markets and as existing competitors improve or expand their product offerings, our plans for future products and enhancements of existing products, our anticipated cash needs and our estimates regarding our capital requirements, and our anticipated growth strategies changes in technology, legislative or regulatory changes, and other risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010 and in the Company's other filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update any forward-looking statement for any reason.
Ambient, Ambient Smart Grid, Communications for a Smarter Grid and AmbientNMS are registered trademarks of Ambient Corporation with the U.S. Patent and Trademark Office.
SOURCE Ambient Corporation